Describe the role of International Monetary Fund and World Bank.
Answers
The International Monetary Fund is a global organisation founded in 1944 in the post-war economic settlement which included the Bretton-Woods system of managed exchange rates. J.M.Keynes and Harry Dexter White both played an important role in its development.
Its primary aim is to help stabilise exchange rates and provide loans to countries in need. Nearly all members of the United Nations are members of the IMF with a few exceptions such as Cuba, Lichtenstein and Andorra.
The IMF is independent of the World Bank although both are United Nations agencies and both are aiming to increase living standards. The World Bank concentrates on long-term loans to developing countries.
Functions of IMF
1.International monetary cooperation.
2.Promote exchange rate stability.
3.To help deal with balance of payments adjustment
4.Help deal with economic crisis by providing international coordination – loans, plus advice.